You’ve seen the adverts, talked to your friends and then taken a wander into an dealership, so that you can see the van in all its glory, all shiny and new. You will of course compare prices and look for discounts both in the local dealers and on the internet. In the final step, you buy your new van, either with your savings or a loan. But wait – there might be a better way!
Buying your new van, you’ll need to take into account interest, road tax and depreciation. The maintenance costs will be about the same as for leasing if you only have the van for up to 36 months, but past that, the maintenance costs on a van you own start to go through the roof. After some time, you’ll need a new van, plus you’ll need to get rid of your current one. This is time-consuming; you have to advertise it, deal with potential buyers coming to see it and haggling the price lower than you would like. You could part-exchange with the dealer of your new van, although perhaps the best price won’t be achieved.
Leasing could be the answer to all the irritations of van buying, leasing in the USA is huge and now the UK is the most advanced van leasing market within Europe, buying thousands of new vans, leasing and then recycling them back into the used van market. If you look to change your vehicle regularly (every 2 or 3 years) then leasing works out as the least expensive option. You save money by taking advantage of the buying power of the big leasing companies, plus you save on the hassle of the disposal at the end of the contract. You are effectively only paying for the van for the time you have it, since the value remains in the vehicle.
If your van works hard and is, for example, on and off building sites, you might be worried about the return condition. An option called “finance lease” might be for you, and has many of the leasing benefits. Please call one of our van advisors on the number above to discuss this further.
A rental is based on a small initial outlay, and then the monthly rental is fixed which helps with budgeting. You pay the monthly rental and then at the end of the term you simply hand back the van. Providing it meets the condition and mileage stated in the contract, there is nothing left to pay.
The cost of any excess mileage is stated in the contract and is not a penalty, simply a cost.
Any damage to the van on return must fall within the guidelines of the BVRLA fair wear and tear guide, which we can provide you with on request prior or during the contract.
You will pay minimum maintenance costs, since most new vans come with 3 or 5 year full manufacturer’s warranty, which also includes road tax for the complete term.
Van leasing is available to you too. You will have all the same benefits as any other business customer.